Uranium Energy Corp. announces that, further to its news release of July 28, 2022, it has advised UEX Corporation (“UEX”) that it is submitting a superior offer to the acquisition proposal made by Denison Mines Corp. (“Denison”) on July 28, 2022 (the “Denison Proposal”) for all of the issued and outstanding shares of UEX (“UEX Shares”).
Under the terms of UEC’s revised offer (the “Revised UEC Offer”), each holder of UEX Shares will now receive 0.0890 of one common share of UEC (a “UEC Share”) for each UEX Share held, implying consideration of approximately C$0.49 per UEX Share based on the closing price of UEX Shares and UEC Shares on the Toronto Stock Exchange and the NYSE American Exchange, respectively, and the spot exchange rate as of August 5, 2022. The Revised UEC Offer also increases the break fee by 7%, which is an increase proportional to the percentage increase in the offered exchange ratio under the Revised UEC Offer.
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Amir Adnani, President and CEO, stated: “After careful analysis and consideration, we firmly believe the Revised UEC Offer represents a value-creating opportunity for UEC and UEX shareholders. We remain disciplined with respect to pursuing accretive growth and the Revised UEC Offer strikes a balance of a modest increase in the exchange ratio while doubling UEC’s uranium resources1 at only a 14.2% dilution to our outstanding shares. This transaction highlights UEC’s sector leading strategy as the fastest growing, pure play, 100% unhedged uranium company and will create the largest, diversified North American focused uranium company. Finally, a true testament to the win-win industrial logic of the transaction is the overwhelming positive support for our deal, as evidenced with over 38% of eligible UEX securities tendered with over 93.7% voted in favor, and the positive share price performance for UEC. With an offer that is superior to the Denison Proposal in all respects, we look forward to completing this transaction following the UEX shareholder vote next week.”
If the board of directors of UEX (the “UEX Board”) accepts the Revised UEC Offer, UEC expects that the special meeting of UEX securityholders to approve UEC’s acquisition of the UEX Shares based on the Revised UEC Offer will continue to be held as currently scheduled on Tuesday August 9, 2022, with an anticipated closing date (subject to court approval and the satisfaction or waiver of closing conditions customary for a transaction of this nature) by mid-August.